Originally posted on Apr 23, 2011
Although our market isn’t as bad as the Phoenix area, of all the homes sold in Navajo and Apache Counties in 2010, 47% were foreclosed properties or short sales. These “distressed” sales have had a major impact on property values.
Year-to-date there have been 9 condos and townhomes sold and 8 of those have been bank owned homes, either from foreclosures or bankruptcies. This compares to 3 bank owned sales out of the 5 homes sold in the same period last year.
In 2010 there were 45 condos and townhomes sold and 12 of these were bank owned. This compares to 6 bank owned condo and townhomes sold out of 32 sales in 2009.
The decrease in the average price of homes sold indicates how the increase in foreclosures has impacted property values. The average price of the condos and townhomes sold in 2010 was almost 18% lower than in 2009. Year-to-date in 2011 the average price of the condos and townhomes sold is down almost 26% from the same period last year.
This has had a larger impact on condos and townhomes than on the overall market. The average price of all of the homes sold in Navajo and Apache Counties was down almost 12% from 2009 to 2010, compared to 18% for condos and townhomes.
The April 2011 issue of RealtyTrac’s Foreclosure Market Trends Report stated that nationwide foreclosure filings were down 15% for the 1st quarter of 2011 compared to the prior quarter and there was a 27% decrease from the first quarter of 2010. This is a three year low, but there was a 7% increase from February to March.
RealtyTrac also reported that foreclosure activity will probably begin to increase again as lenders work through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork.